IOSCO international securities body releases DeFi recommendations
The regulators’ forum looked at the effective implementation of basic principles in a series of interrelated reports.
The International Organization of Securities Commissions (IOSCO) released nine policy recommendations on Dec. 19. The organization is seeking to encourage greater consistency of regulatory oversight within and across jurisdictions.
The recommendations are the end result of a process that began with a report released early last year. They are far from groundbreaking — Rule 7, for example, is “enforce applicable laws” — but their value is in the detailed treatment each is given.
Thus, the guidance accompanying Rule 7 lists the various ways a decentralized finance (DeFi) or other market participant could seek to avoid regulation. “Regulators should assess whether they have the appropriate powers, tools and resources,” it advises, and it lists potential tools.
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